Caution! Scforex is an offshore company! Your funds may be at risk.
Scforex.hk Key facts
🔴 Scforex.hk is an anonymous broker falsely claiming to be SFC regulated in Hong Kong. Red flag!
🔴 Scforex.hk withholds critical information about themselves. Red flag!
🔴 Scforex.hk is co-hosted with other suspicious, shady brokers. Disturbing sign!
Company: Scforex.hk registration, license and regulation
Scforex.hk introduces as a Hong Kong regulated broker, but we found that they aren’t. The research in the Hong Kong authority database produced no results, so we can confirm it’s a shady entity that’s not trustworthy. Traders should only rely on licensed FX companies because it’s the best way to avoid scam.
Each broker presented in US have to be an NFA member and registered with CFTC.
The regulations in USA are quite heavy, compared to other domains. The capital adequacy requirement state Forex brokers have to provide minimum 20 million USD in paid-up capital to get a US license. Also clients’ funds should be kept in segregated accounts, making it impossible for brokers to misuse the capital for daily expenses.
The restrictions on Forex trading in USA includes a maximum allowed ratio of 1:50. Clients are also limited by the FIFO rule (first in, first out), meaning traders have to close their positions consequently. Hedging is also disallowed, which some traders might find restricting.
Address: Scforex.hk address and contacts
Scforex.hk refuse to open up and share their headquarter address and contact numbers with the public. The only way you can approach them is via the Contact Form on their page, where you can submit a message. This shady broker’s secretive nature indicates it might as well be involved in fraudulent activities, given the fake claims they make about their license.
Domain: Scforex.hk website information
Scforex.hk domain was registered on 18.03.2020, so it’s less than a year old. There are 8 more forex brokers’ websites hosted on the same Hong Kong IP address.
Based on the swindling claims we suppose that scforex.hk is a part of a fraudulent website network run by a group of shady individuals who want to steal as much as possible from the people.
We paid utmost attention to the regulation and transparency in the sections above because it’s mandatory for trading and investments. Pretty much each company offering financial services have to be authorised by the local financial authority.
However, some entities operate unlicensed and intentionally run investment fraud. It would be best if you only dealt with companies authorised by the regulators, so always check to make sure they are. Bear in mind that if you trade with unauthorised businesses, you won’t be protected, so it’s very likely to suffer losses almost impossible to recover if things go wrong.
Online scam is trending nowadays with fraudulent websites popping up literally every day. The financial authorities increase the number of warnings issued year after year, but the dangers are still out there and growing exponentially. You’ll realise the hazards when you consider OneCoin scam- it’s still impossible to calculate the total loss, but it’s regarded as 15 billion worth fraud. Make sure to trade with licensed and regulated companies to avoid off-putting losses.